Institutional fragmentation is usually assumed to influence social policy outcomes in countries with constitutional features such as federalism and divided government, but not in unitary and parliamentary states. The example of childcare politics in the Scandinavian countries suggests that institutional fragmentation and veto points also can play a significant role in unitary and parliamentary systems. The rules of childcare implementation in the Scandinavian countries to a varying degree provide municipalities and NGOs with veto opportunities and veto incentives against the realization of the central government's ambition of universal childcare coverage. In Norway but not in Sweden and Denmark municipalities and NGOs have been provided with significant veto opportunities as well as considerable incentives to act. This might help to understand why Norwegian childcare development has lagged behind its Scandinavian neighbours.